As we’re sure you’ll agree, 2020 was one of the most tumultuous years when it came to our investments. While the stock market held steady for most industries, there wasn’t too much good news elsewhere.
However, it’s important to note that there are still a few movers in the tail end of 2020 that make for good investments. With the EU, the US, and the UK falling back into lockdowns that none of us are sure for how long, investing might not be something on your mind as of right now – though, with a good eye, some investment prowess, and a clear head, we’re sure you’ll find a good earner in 2020.
Take a look below at some of the top investments of 2020.
1. High-yield savings accounts – Term and every day.
Without a doubt, 2020 has shaken the consumer-based markets this year and as banks do their best to get us spending again by lowering savings rates, there are a few bank accounts out there that are great for investing.
Our biggest tip, and one of the most popular investments this year is to look out for a high-yield savings account from one of the Big Four banks.
Westpac and other large banks, for example, are having interest rate hikes through the tail-end of 2020 to get customers back into saving. Look for a rate of 3 percent or more and you’re on the right track. This is a low-risk way of investing that raises your own personal liquidity and keeps you in the green.
2. Government bond funds.
Another great long-term investment that’s becoming quite popular in 2020 are bonds or Government Bonds. These are a defensive asset, which means they’re a lot more secure than some other investments out there and they’re inherently designed to protect any amount of money you invest in them.
To keep things simple, when you invest in bonds, you’re lending a government some cash for which they will pay you in coupon payments. You can think of these as similar to dividends. We suggest you hold the bond until maturity, and you will have made a pretty penny along the way.
3. The big cryptocurrencies.
Another fantastic investment in 2020 is the crypto assets. These are continuing to outgrow the stock market, and being decentralized means that they’re able to maneuver and grow as they please.
Our top choice investments for digital assets include Bitcoin, Bitcoin Cash, Dash, Dogecoin, Litecoin, Ripple, and Ether. All of these coins are reputable and long-term earners and come with a lot of support from exchanges.
To add, as cryptocurrency is rather volatile, there is the chance you’ll earn big in a short period of time — though you could lose big too. If you want to invest, you’ll need to sign up for a cryptocurrency exchange for these coins and to open up a crypto wallet to store them.
Learn more about cryptocurrency wallets before pulling the trigger on investment though.
4. Dividend stocks.
In keeping with Bonds, the dividend stocks are making a comeback in popularity toward the end of 2020 as the tech stocks take off.
A dividend is essentially a payment that you’ll receive on a set basis from the company with which you hold the stock. Think of this as the company’s appreciation payment for choosing to invest with them.
To find a solid dividend stock, take a look at the ASX under the Dividend’s tab and do some research on good earners for 2020.
5. Corporate bond funds.
Again, like Government Bonds, a corporate bond is an investment in a company rather than a government. With that said, corporate bonds are a little riskier, though they do often offer up higher coupon payments.
These are a good investment for anyone looking for higher short-term payoffs and an income-earning fund, rather than a stock.
Keep in mind that you should always vet the companies you’re looking to purchase a corporate bond with, and then you’re all set.
6. Rental housing.
To end, one of the more costly but still popular investment opportunities in 2020 is the rental housing avenues. As the housing market begins to shake from COVID-19, there’s becoming a major avenue for rental growth as buyers look to focus on the short-term, and move into rentals.
Now more than ever, rental properties are looking to be good earners with government support payments working to off-set some of the cost for renters, giving property investors an avenue for rental income growth and increases.